Financial Results for the First Quarter Ended January 31, 2022
[Japan GAAP] (Consolidated)
Date:

March 14, 2022

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts:

Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: March 16, 2022
Date for Dividend Payment:

Not applicable to this financial quarter

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Not prepared
Briefing Session for Quarterly Operating Results: Yes (for analysts and institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the First Quarter Ended January 31, 2022
(1) Results of Operation (Consolidated)

Quarter Ended January 31, 2022
Quarter Ended January 31, 2021

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
9,960
528
-18.6
559
-17.1
10,606
11.4
649
21.6
675
25.0

Quarter Ended January 31, 2022
Quarter Ended January 31, 2021

Net Income Attributable to
Owners of the Parent
Millions of
Yen
Percent
689
38.6
497
40.0

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
69.14
49.90

Yen
-

(Note) Comprehensive income
First Quarter ended January 31, 2022: 708 million yen (20.4%)

First Quarter ended January 31, 2021: 588 million yen (59.2%)(Note) We have applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) from the beginning of theconsolidated first quarter under review, and the figures for the fiscal year ending October 31, 2022, are figures after applying the said
accounting standard. Because a significant impact on net sales arises, the year-on-year percentage change in net sales is not shown.
(2) Financial Condition (Consolidated)

Quarter Ended January 31, 2022
Year Ended October 31, 2021

Total Assets (A)(Millions of Yen)
42,672
43,254(Reference) Net assets
First Quarter ended January 31, 2022: 32,300 million yen

Net Assets (B)(Millions of Yen)
32,30031,841Net Assets Ratio(B) / (A) (Percent)
75.7
73.6

Year Ended October 31, 2021: 31,841 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2021
Year Ending October 31, 2022
Year Ending October 31, 2022
(Prospect)First
Quarter-InterimTerm
25.00

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
25.00

25.00

(Note) Revisions since the most recently released dividend projection: None

-

25.00

Annual50.00
50.00

3. Forecast for Earnings for the Year Ending October 31, 2022 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
39,650
2,390
-16.0
2,400
-17.4
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
1,960
-7.0
196.43(Note) Revisions since the most recently released earnings forecast: None
We have applied Accounting Standard for Revenue Recognition from the beginning of the consolidated first quarter underreview, and the forecasts are based on the said accounting standard. Because a significant impact on net sales arises,
the percentage change against the net sales result for the fiscal year ended October 31, 2021, before application of thesaid standard, is not shown.
Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of the specific accounting method to create quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and retrospective restatements.
1) Changes in accounting policies due to revision of accounting standard: Yes
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
Please refer to the Attachments for the details on page 8, (3) [Notes on Quarterly Consolidated Financial
Statements] of 2. [Quarterly Consolidated Financial Statements and Notes.
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At January 31, 2022: 10,533,200 shares

At October 31, 2021: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At January 31, 2022: 554,911 shares

At October 31, 2021: 554,911 shares

3) Number of average shares (accumulated quarterly total)
At January 31, 2022: 9,978,289 shares

At January 31, 2021: 9,978,339 shares*The quarterly earnings report is exempt from the quarterly review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors.
Please refer to the Attachments on page 3, (3) [Analysis of Future Forecast on Quarterly Consolidated Earnings
Forecast] of 1. [Qualitative Information on Quarterly Consolidated Operating Results] for the operating results forecast.

Table of Contents (Supporting Data)
1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statements and Notes.................................................................................................4(1) Quarterly Consolidated Balance Sheet................................................................................................4(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
Income.......................................................................................................................................................................6
Quarterly Consolidated Statement of Income.....................................................................................................6
Quarterly Consolidated Statement of Comprehensive Income.........................................................................7(3) Notes on Quarterly Consolidated Financial Statements.......................................................................................8(Note for premise of going concern) .................................................................................................8(Notes for significant changes in shareholder’s equity) .......................................................................................8(Changes in accounting policies) .................................................................................................8(Segment information).........................................................................................................................10

1

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the first quarter of the current consolidated fiscal year, Japan’s economy recorded positive growth as personal
consumption recovered rapidly and capital investment and exports started to increase. However, at present, there are
growing fears of a slowdown occurring because of a rapid spread of infections from the Omicron variant. On the other
hand, overseas, whereas the U.S. economy has sustained its strength, the growth rates in the Chinese and European
economies have slowed.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated first quarter were 9,960
million yen. From an earnings aspect, operating income was 528 million yen, 18.6% down from the same period lastyear because of lower income in the Machinery & Equipment Business, while ordinary income came to 559 million yen,
17.1% down from the same period last year. Net income attributable to owners of the parent was 689 million yen,
38.6% up from the same period last year reflecting appropriation of profit on sales of noncurrent assets.
As for the effect on net sales due to the change of the revenue recognition standard, net sales increased 182 million yen
in the Machinery & Equipment Business and decreased 1,585 million yen in the Chemical Products Business.
Operating results by respective segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, net sales of machinery, equipment and construction for domestic public sector
demand expanded, but net sales of machinery for domestic private sector and overseas markets, and components andrepair services for all fields were stagnant.
(Millions of Yen)
Product classification

Machinery

Equipment
andconstruction
works
22

Components
and repair
services

TOTAL

January, 2021
16
561
600
(previous standard)
Public sector January, 2022
173
218
466
859
(new standard)
January, 2022
116
111
466
694
(previous standard) *January, 2021
146
0
455
602
(previous standard)
Private sector January, 2022
17
17
421
457
(new standard)
January, 2022
17
0
421
439
(previous standard) *January, 2021
895
0
736
1,632
(previous standard)Overseas
January, 2022
150
0
457
607
markets(new standard)
January, 2022
150
0
457
607
(previous standard) *January, 2021
1,059
22
1,753
2,835
(previous standard)
TOTAL
January, 2022
341
236
1,345
1,923
(new standard)
January, 2022
284
111
1,345
1,741
(previous standard) **For net sales in the consolidated quarter under review, the asterisk mark indicates the figure revised due to the effectof the change of the revenue recognition standard.
2

With respect to earnings, operating income turned to a loss of 36 million yen from profit of 110 million yen in the same
period last year because net sales of machinery for domestic private sector and overseas markets, and components
and repair services for all fields were stagnant.
(Chemical Products Business)
In the Chemical Products Business, net sales of materials mainly for building and fireproof in the industrial materials
sector, materials for paint and ink applications in the fine chemical products sector, and materials for semiconductor
manufacturing devices in the electronic materials sector, and of all other sectors expanded.
January, 2021
(previous standard)(Millions of Yen)
January, 2022
(previous standard) *January, 2022
(new standard)

Synthetic resin sector

1,949

1,159

2,357

Industrial materials sector

1,223

1,494

1,598

Mineral products sector

1,022

1,193

1,193

Chemical products sector

1,634

1,938

2,113

Advanced materials sector

849

919

1,021

Electronic materials sector

1,015

1,246

1,253

79

85

85

7,770

8,037

9,623

Other products (foreign liquor)
Total*For net sales in the consolidated quarter under review, the asterisk mark indicates the figure revised due to the effectof the change of the revenue recognition standard.
With respect to earnings during the period, operating income was 565 million yen, 5.0% up from the same period one
year earlier, reflecting strong sales in all sectors.
(2) Analysis of Financial Condition
Total assets as of the end of the consolidated first quarter under review were 42,672 million yen, down 1.3% or 581
million yen from the end of the previous consolidated fiscal year. This mainly reflected an increase in merchandise andfinished goods and work in process, and a decrease in cash and deposits, and investment securities.
Liabilities were 10,371 million yen, down 9.1% or 1,040 million yen from the end of the previous consolidated fiscal year,
mainly because of higher contract liabilities compared to advance received at the end of the previous consolidated fiscal
year, and a decrease in provision for bonuses and income tax payable.
Net assets stood at 32,300 million yen, 459 million yen or 1.4% up from the end of the previous consolidated fiscal year.
This mainly reflected a decrease in valuation difference on available-for-sale securities, and an increase in retained
earnings and foreign currency translation adjustment.
As a result of the above changes, the equity ratio at the end of the consolidated first quarter under review
increased by 2.1 point compared with the end of the previous consolidated fiscal year to 75.7%.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending in October 31, 2022 thatwere announced in the “Financial Results for the Fiscal Year Ended October 31, 2021 [Japan GAAP] (Consolidated)”released on December 14, 2021.

3

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet (First Quarter)(Thousands of Yen)
AssetsEnd of Previous YearEnd of First Quarter(October. 31, 2021)(January 31, 2022)

Current Assets
Cash and Deposits

12,607,490

10,581,230

Notes and Accounts Receivable-Trade

11,694,334−−

11,685,930

Electronically Recorded Monetary Claims

3,279,411

3,613,072

Merchandise and Finished Goods

3,589,851

4,281,486

Work in Process

1,290,848

1,641,941

Raw Materials and Supplies

743,778

1,012,234

Others263,549

231,052

Allowance for Doubtful Accounts
Total Current Assets-64,455-66,21733,404,810

32,980,732

5,236,376

5,059,453

Accumulated Depreciation-2,183,281-2,067,288

Buildings and Structures, Net

3,053,095

2,992,165

Machinery, Equipment and Vehicles

3,992,687

4,038,325-3,555,668-3,623,444

437,019414,880

2,302,076

2,302,064

16,246

27,697

1,097,469

1,105,510

Accumulated Depreciation-995,989-1,011,849

Others, Net

101,480

93,6605,909,917

5,830,468

81,07372,186

Investment Securities

1,425,438

1,351,728

Guarantee Deposits

402,260

402,925

1,956,842

1,970,556

Deferred Tax Assets

13,508

4,095

Others82,04581,993

Allowance for Doubtful Accounts-21,892-21,892

Total Investments and Other Assets

3,858,203

3,789,407

Total Noncurrent Assets

9,849,194

9,692,061

Total Assets

43,254,004

42,672,793

Notes, Accounts Receivable-Trade and Contract
AssetsNoncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land
Construction in Progress
OthersTotal Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets4

(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2021)(January 31, 2022)

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade4,208,592

4,463,899

Electronically Recorded Monetary Debt

2,306,052

2,405,647

Accounts Payable-Others

685,729

692,046

Income Taxes Payable

775,198

41,967

Advances Received

308,942−−626,112

1,406,031

502,960

Provision for Directors' Bonuses

80,97919,594

Allowance for Product Warranty

363,270

334,459

Others536,079

274,765

10,670,876

9,361,453

Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

67,772

69,057

Deferred Tax Liabilities

668,441

936,019

Total Noncurrent Liabilities

741,673

1,010,537

Total Liabilities

11,412,550

10,371,991

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

28,721,695

29,162,134

Treasury Stock-364,081-364,081

Total Shareholders’ Equity

30,902,234

31,342,672

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

450,885

396,155

7,785

2,699

Foreign Currency Translation Adjustment

213,842

303,758

Total Adjustment on Net Defined Benefit

266,705

255,517

Total Accumulated Other Comprehensive Income

939,220

958,130

Total Net Assets

31,841,454

32,300,802

Total Liabilities and Net Assets

43,254,004

42,672,793

Contract Liabilities
Provision for Bonuses

Total Current Liabilities

Net Assets
Shareholders’ Equity5(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income (First Quarter)(Thousands of Yen)First Quarter Ended
January 31, 2021

First Quarter Ended
January 31, 2022

Net Sales

10,606,041

9,960,706

Cost of Sales

8,155,451

7,553,873

2,450,589

2,406,832

1,801,104

1,878,013

649,485

528,819

Interest Income

685

383

Dividends Income

11,35914,191

Rent Income

1,829

1,851

Foreign Exchange Gains

8,125

2,623

Others

6,921

13,49828,92132,549Interest Expenses

554

536

Commission Paid

756

756

Sales Discount

1,553

−

484

541

Total Non-Operating Expenses

3,348

1,834

Ordinary Income

675,057

559,534−

456,447

23,927−

Total Extraordinary Profits

23,927456,447

Income before Income Taxes and Minority Interests

698,985

1,015,981

Income Taxes-Current

11,81017,823

Income Taxes-Deferred

189,252

308,263

Total Income Taxes

201,063

326,086

Net Income

497,922

689,895

497,922

689,895

Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses

OthersExtraordinary Profits
Profit on Sales of Noncurrent Assets
Profit on Sales of Investment Securities

Net Income Attributable to
Owners of the Parent

6

Quarterly Consolidated Statement of Comprehensive Income (First Quarter)(Thousands of Yen)First Quarter Ended

First Quarter Ended

January 31, 2021

January 31, 2022

497,922

689,895

Valuation Difference on Available-for-sale Securities

78,657-54,730

Deferred Gains or Losses (-) on Hedges

2,433-5,086

Foreign Currency Translation Adjustment

12,79089,916

Net Defined Benefit-3,212-11,188

Total Other Comprehensive Income

90,66818,910588,590

708,805

588,590

708,805

Net Income
Other Comprehensive Income

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of the
Parent7

(3) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition)
We have applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; hereinafter referred to as
Accounting Standard for Revenue Recognition) from the beginning of the consolidated first quarter under review, andwhen control of the promised goods or services is transferred to the customer, we recognize as revenue the amount
expected to be received in exchange for the said goods or services. As a result, for recognition of revenue, mainly thefollowing changes have arisen.
1) Performance obligation identification and transaction price allocation
Regarding construction contracts that include machinery sales and construction, we have changed to the method of
allocating transaction prices on the basis of standalone selling prices after recognizing the performance obligations
relating to machinery sales and construction as separate performance obligations, and then recognizing revenue wheneach of the performance obligations is satisfied.
2) Revenue recognition for construction contracts
In the past, regarding construction contracts for which the outcomes of the construction activities were deemed certain
during the courses of the activities, we applied the percentage-of-completion method, and for other construction
contracts, we applied the completed-contract method. However, we have changed to the method of recognizing revenue
over a specified period of time as the performance obligations are satisfied. Furthermore, regarding construction forwhich the percent complete relating to satisfying the performance obligation cannot reasonably be estimated, we
recognize revenue based on the completed-contract method.
3) Revenue recognition for agent transactions
Regarding transactions for which it is judged that the Company’s performance obligations in the contracts with customers
are agent services to make arrangements for goods or services to be provided by other principals, we record revenue
on a net basis by offsetting net sales to customers that were formerly recorded on a gross basis with the corresponding
costs of sales.
4) Sales discounts
Sales discounts, which we formerly included in non-operating expenses, are deducted from net sales.
Regarding application of Accounting Standard for Revenue Recognition, we comply with the transitional treatmentprescribed in the Article 84 proviso of Accounting Standard for Revenue Recognition. The cumulative effect ofretroactively applying the new accounting policy to periods prior to the beginning of the consolidated first quarter underreview has been added to or subtracted from the retained earnings at the beginning of the said quarter under review,
and we apply the new accounting policy beginning from the relevant balance at the beginning of the period. However,
applying the method prescribed in Article 86 of Accounting Standard for Revenue Recognition, we have not retroactively
applied the new accounting policy to contracts for which almost all the revenue amounts were recognized in compliancewith the prior treatment until before the beginning of the consolidated first quarter under review.
8As a result, in the first quarter of the current consolidated fiscal year, while net sales decreased 1,403,601,000 yen andcost of sales decreased 1,434,459,000 yen, operating income increased 30,858,000 yen, and ordinary income andincome before income taxes and minority interests both increased 32,927,000 yen.
Because we applied Accounting Standard for Revenue Recognition, the notes and accounts receivable-trade that wereshown under current assets in the consolidated balance sheet for the previous consolidated fiscal year are shown
included in notes and accounts receivable - trade, and contract assets beginning from the consolidated first quarter
under review. In addition, the advances received that were shown under current assets are shown included in contract
liabilities. Furthermore, in compliance with the transitional treatment prescribed in Article 89-2 of Accounting Standard for
Revenue Recognition, for the previous consolidated fiscal year, we have not performed a restatement by using the newpresentation method.
(Application of Accounting Standard for Fair Value Measurement)
We have applied Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30; hereinafter referred to as
Accounting Standard for Fair Value Measurement) from the beginning of the consolidated first quarter under review, andin compliance with the transitional treatment prescribed in Article 19 of Accounting Standard for Fair Value Measurement
and Article 44-2 of Accounting Standard for Financial Instruments (ASBJ Statement No. 10), we will in the future apply
the new accounting policy prescribed by Accounting Standard for Fair Value Measurement. Furthermore, there is noeffect on the quarterly consolidated financial statements.

9

(Segment information, etc.)[Segment information]
First Quarter Ended January 31, 2021
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

２,835,613

7,770,427

10,606,041

10,606,041

-

-

-

-

Total

２,835,613

7,770,427

10,606,041

10,606,041

Segment Profit

110,686

538,798

649,485

649,485

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

First Quarter Ended January 31, 2022
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

1,923,534

8,037,171

9,960,706

9,960,706

-

-

-

-

Total

1,923,534

8,037,171

9,960,706

9,960,706

Segment Profit or Loss (-)-36,694565,514528,819

528,819

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

10